Torrid Holdings 2026 Q3 Earnings Significant Loss Expansion as Net Loss Widens 438.2%

Torrid Holdings reported its fiscal 2026 Q3 earnings on Dec 10th, 2025, with results falling short of expectations as revenue declined and losses widened. The company provided no forward-looking guidance, maintaining a neutral stance on future performance despite strategic cost-cutting initiatives.

Revenue

Torrid Holdings’ total revenue fell 10.8% year-over-year to $235.15 million in Q3 2026. Apparel remained the core revenue driver, contributing $213.62 million, while non-apparel sales totaled $12.31 million. Other revenue streams added $9.23 million, culminating in total net sales of $235.15 million. The decline was attributed to fewer sales transactions and a 14.5% reduction in store count to 560 locations as of November 1, 2025.

Earnings/Net Income

The company’s losses deepened to $0.06 per share in Q3 2026, a 500.0% increase from the $0.01 loss per share in the prior-year period. Net losses expanded to $6.43 million, up 438.2% from $1.19 million in Q3 2025. Despite sustained profitability for five years in the corresponding quarter, the latest results reflect intensified pressure from macroeconomic challenges and elevated marketing expenses. The earnings decline underscores a sharp deterioration in operational performance.

Price Action

The stock price of Torrid Holdings rose 2.73% in the latest trading day but dropped 13.74% over the past week and 5.83% month-to-date.

Post-Earnings Price Action Review

A strategy of buying CURV when revenues exceeded expectations and holding for 30 days proved highly ineffective, returning -65.76% compared to a benchmark gain of 67.96%. The excess return of -133.72% and a CAGR of -30.24% highlight the strategy’s underperformance. Despite a maximum drawdown of 0.00% and a Sharpe ratio of -0.33 indicating elevated risk, the approach failed to capitalize on post-earnings momentum.

[CEO Commentary]

CEO Christopher B. Nettesheim emphasized stabilizing core operations and refining cost structures amid market headwinds. He highlighted investments in digital infrastructure and customer engagement tools as critical to long-term value creation, expressing cautious optimism about the brand’s resilience despite near-term challenges.

[Guidance]

Torrid Holdings did not provide explicit forward-looking guidance during the earnings call. Management reiterated its focus on store closures and e-commerce optimization but offered no quantitative targets for future periods.

Additional News

Torrid Holdings Inc. disclosed in its Q3 2025 10-Q filing a strategic shift toward e-commerce amid declining store foot traffic. The company accelerated store closures, reducing locations by 14.5% to 560 stores as of November 1, 2025. Management attributed the decision to aligning with customer preferences for online shopping. Additionally, the retailer plans to launch 16 new product lines annually to sustain customer engagement. The SEC report also noted increased merchandising payroll costs and marketing expenses as key contributors to the widened net loss.